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IRS Issues Notice for Eligible Entities to Claim Statutory Exception to Phaseouts for Elective Pay RETC Projects

Thursday, December 28, 2023 - 10:46AM

The Department of the Treasury and the Internal Revenue Service (IRS) today issued a notice and a request for comments to provide procedures for entities to claim the statutory exception to phaseouts for elective payment clean energy projects that begin construction in 2024 and fail to satisfy the Inflation Reduction Act’s (IRA’s) domestic content requirement. Notice 2024-9 covers properties financed with the renewable energy production tax credit (PTC), clean electricity PTC, the energy investment tax credit (ITC) and the clean electricity ITC. Applicable entities include nonprofit organizations, state and local governments, Indian tribal governments, Alaska Native corporations, the Tennessee Valley Authority and rural electric cooperatives. Unless a statutory exception applies, the phaseouts generally apply to projects that produce 1 megawatt or more of electricity and fail to satisfy the IRA’s domestic content requirement. Written comments on the procedures should be submitted by Feb. 26, 2024, and include a reference to Notice 2024-9.

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